I included this in a previous post around KPIs and got some fantastic responses - but here I'm interested in the return on investment - what do we show our Finance Director and CEO?
what do you guys do - and where do you do it? Marketo or CRM?
Let's say Marketing is given $1 - what is the return? Open pipe? Closed Won from Marketing sourced leads? website leads? what's th ebest way to show that an Event or Webinar were successful in comparison to other Programs/Activities?
all help appreciated...and instructions on how to build in Marketo/Salesforce also appreciated...
Hi Michael Collins,
I've had success using Marketo's Revenue Explorer functionality to answer precisely these kinds of questions. However, these aren't questions that you're going to be able to answer immediately. I've found it best to get a baseline level of familiarity with what types of metrics are available and how long it'll take the marketing ops team to start getting these metrics. Then, sit down with your Finance and leadership stakeholders to agree to the metrics. Without prior agreement they might say 'Oooh, nice metrics - but we want these other ones instead.' Learn from my previous mistakes!
As for documentation - this is a good start: Revenue Explorer - Marketo Docs - Product Docs
I agree with @David Gaible - RCE can help you answer many of these questions, and it's always a great idea to have an initial conversation to create marketing-sales-executive alignment first.
As you work towards alignment, you can leverage Program Performance Reports to see multiple program stats including new people acquired, program success, and period costs.
Hi Michael Collins,
As both David Gaible and Nick Hajdin advised, RCE can help you evaluate your programs based on important metrics - new names, successes, pipeline, revenue (both first touch or FT, and multi touch or MT). You can easily calculate ROI as well, because you can pull in program cost and divide the pipeline/revenue by that. At Marketo, we consider a FT pipeline-to-cost ratio of at least 5, or MT pipeline-to-cost ratio of at least 7 to be a success.
When comparing programs, it's important to also understand that some programs are better at driving FT pipeline (i.e. bringing in new qualified leads) such as paid ads, and others more at driving MT pipeline (i.e. pushing leads down the funnel) such as webinars. It really depends on what your goal is.
Hope this helps!